CARES Act Encourages Generosity
Besides observing social distancing to stay healthy and prevent the spread of the coronavirus, there are many other ways to help during this healthcare crisis. By supporting nonprofits, both in your community and globally, you are helping when it’s needed most. Although these donations were previously tax-deductible, the Coronavirus Aid, Relief and Economic Security (CARES) Act, which was signed into law on March 27, includes a new charitable giving tax break to encourage more people to donate.
How You Can Help
American Red Cross: Blood Donation
Consider donating blood to the American Red Cross, an organization that is facing a severe blood supply shortage currently.
Food Bank Donations
Food banks are also in critical need of help. With school closures, job disruptions, and health risks, millions will turn to food banks for much-needed support.
Charitable Giving Tax Benefits
According to Forbes, Americans who choose to make a donation in 2020 can itemize a new above-the-line charitable deduction. Taxpayers will be able to claim up to $300 in cash contributions made to a nonprofit charity this year as a deduction from their gross income if they take the standard deduction on their 2020 tax return.
Whichever way you choose to give, it will feel good to help those in need. And if you can get a tax break for being generous, be sure to save your paperwork so you can claim it at tax time next year!